BALANCE OF PAYMENTS STATISTICS

DEFINITION, PRINCIPLES AND PRACTICE IN

TURKEY

THE CENTRAL BANK OF TURKEY

STATISTICS DEPARTMENT
Balance of Payments Division

CONTENTS
Page Number
CONTENTS .................................................................................................... i
I- DEFINITION ............................................................................................... 1
II- PRINCIPLES ............................................................................................. 2
1.Double-entry ............................................................................................... 2
2. Change of Ownership ................................................................................ 4
3. Market Value .............................................................................................. 4
III- STANDARD COMPONENTS ................................................................... 4
1. Current Account ......................................................................................... 4
a) Goods and Services............................................................................. 5
i) Goods ........................................................................................... 5
ii) Services ....................................................................................... 5
b) Income ................................................................................................. 5
c) Current transfers .................................................................................. 5
2. Capital And Financial Account ................................................................... 6
a) Capital Account .................................................................................... 6
b) Financial Account................................................................................. 6
i) Direct investment .......................................................................... 7
ii) Portfolio Investment ..................................................................... 8
iii) Financial Derivatives ................................................................... 9
iv) Other Investment ........................................................................ 9
v) Reserve Assets ........................................................................... 9
3. Net Errors And Omissions.........................................................................10
IV-THE PRACTICE IN TURKEY AND DATA SOURCES ............................12
1. Current Account ........................................................................................13
a) Foreign Trade Balance .......................................................................13
b) Services ..............................................................................................14
i) Transportation .............................................................................14
ii) Travel ..........................................................................................15
iii) Construction Services ................................................................15
iv) Insurance Services ....................................................................16
i

v) Financial Services ......................................................................16

vi) Other Business Services ............................................................16
vii) Government Services................................................................16
viii) Other Services .........................................................................16
c) Income ................................................................................................17
i) Compensation of Employees .......................................................17
ii) Income ........................................................................................17
d) Current Tranfers..................................................................................18
i) General Government ...................................................................18
ii) Other Sectors..............................................................................18
2. Capital and Financial Account...................................................................18
a) Capital Account ...................................................................................18
i) Migrants Transfers ......................................................................18
ii) Acquisition or Disposal of Non-produced and Nonfinancial Assets
.......................................................................................................18
b) Financial Account...............................................................................19
i) Direct Investment .........................................................................19
ii) Portfolio Investment ....................................................................20
iii) Other Investment .......................................................................20
iv) Reserve Assets ..........................................................................22
V- DATA ACCESS .......................................................................................23
Appendix: Balance of Payments of Turkey: Detailed Presentation: ......24

ii

BALANCE OF PAYMENTS STATISTICS

DEFINITION, PRINCIPLES AND PRACTICE IN TURKEY
International standards regarding the compilation of balance of payments
statistics are described in the fifth edition of the Balance of Payments Manual (BPM5)
prepared by the International Monetary Fund (IMF) to provide guidance to member
countries and the said standards ensure comparability of the balance of payments
statistics.
Currently, the fifth edition of the Balance of Payments Manual remains in
effect, whereas studies are in progress towards the implementation of the sixth
edition. Definitions, recording principles and classifications given in this text on are in
compliant with the BPM5.
I- DEFINITION
In general, the balance of payments is a statistical statement that
systematically records all economic transactions between residents of an economy
(General Government, Monetary Authority, Banks and Other Sectors) and
nonresidents for a specific time period.
Economic transactions consist of those involving;
-

goods, services and income,

transactions of financial claims and liabilities,

transfers between residents and non-residents for the provision of

real and financial resources without quid pro quo.

There are two basic concepts in the balance of payments definition:

economic territory and residence. The concept of economic territory
corresponds to a geographic territory administered by a government while the
concept of residence refers to an institutional unit or an individual who regularly
resides and engages in economic activities in an economic territory for more than
one year.

The balance of payments statistics measure all economic flows between

residents and nonresidents for a specific time period, such as a month, a quarter or a
year. The unit of account for compiling these statistics may be the domestic currency
or other foreign currencies which are convertible in international markets. However, it
is preferable that the unit of account be a stable currency.
II- PRINCIPLES
1.Double-entry
The basic principle applied in the balance of payments statistics in
accordance with the double-entry accounting system is that every recorded
transaction is represented by two entries with equal values. One of these entries is
designated a credit with a positive (+) sign and the other is designated a debit with a
negative sign (-). In other words, double-entry accounting system requires every
transaction to be recorded with two entries as Credit and Debit.
In the balance of payments statistics;
a credit (+) entry indicates;
-

in the current account, exports of real resources (goods and

services)

in the capital and financial account, an increase in liabilities or a

decrease in assets

while a debit (-) entry indicates;

-

in the current account, imports of real resources (goods and

services)

in the capital and financial account, a decrease in liabilities or an

increase in assets

Some examples of the double-entry transactions are given below:

i- In return for exported goods, 100 units are deposited by a nonresident

importer to the resident exporters account in a domestic bank. This transaction is
recorded as follows:
Credit

Debit

Current Account:
Exports

100

Capital and Financial Account:

Other Investment/Assets/ Currency and Deposits

100

ii- A syndicated loan in the amount of 100 units provided by nonresident

banks to a resident bank is recorded as follows:
Credit

Debit

Capital and Financial Account:

Other Investment/Assets/ Currency and Deposits
Other Investment /Liabilities/Loans

100
100

Non-cash transactions are also recorded in the balance of payments.

For example, a resident importer imports 100 units worth of goods, which will be
repaid in a future date after the delivery is realized. The recording of this transaction
is as follows:
During the delivery of the goods:
Credit

Debit

Current Account:
Goods

100

Capital and Financial Account:

Other Investment /Liabilities /Trade Credits

100

When the payment is realized:

Credit

Debit

Capital and Financial Account:

Other Investment/Assets/Currency and Deposits

100

Other Investment/ Liabilities/ Trade Credits

100

2. Change of Ownership
Within the framework of double-entry accounting principle, credit and debit
entries of all economic transactions are recorded at the time of change of ownership.
3. Market Value
Economic transactions are valued at market prices. Market price may be
defined as the exchange price agreed upon by transactors and the current price at
which an asset or service can be bought or sold.
III- STANDARD COMPONENTS
The balance of payments statistics are classified under two major categories
as set forth in the BPM5: Current Account and Capital and Financial Account. In
summary, while the current account covers all transactions that involve real sources
(goods, services, income) and current transfers; the capital and financial account
shows how these transactions are financed (generally through transactions in
financial instruments or capital transfers).
1. Current Account
The current account is subdivided into three broad items:
a) Goods and Services
b) Income
c) Current Transfers (Unrequited Transfers)

a) Goods and Services

i) Goods
Goods item covers general merchandise, goods for processing, repairs on
goods, goods procured in ports by carriers and nonmonetary gold (commodity gold).
Foreign trade flows are measured in terms of either the Special Trade or
the General Trade system and the choice may differ among countries. The special
trade system is based on the physical movement of goods across customs excluding
the movement of goods to or from the free trade zones located within countrys
national borders, whereas the general trade system covers all goods crossing the
national borders.
ii) Services
Services item covers transportation (including freight), travel, communication
services, construction services, insurance services, financial services, computer and
information services, royalties and license fees, merchanting and other trade-related
services, operational leasing services, miscellaneous technical services, personal,
cultural and recreational services and government services.
b) Income
Income item covers, compensation of employees and receipts and payments
on direct investment, portfolio investment and other investment. Direct investment
income includes income on equity, dividends, reinvested earnings and other
intercompany investment income. Portfolio investment income refers to income on
equity securities (dividends) and income on bonds and other debt securities
(interest). Finally, other investment income refers to interest receipts and payments
on all other resident claims on and liabilities to nonresidents, respectively.
c) Current transfers
Transfers are defined as offsetting entries for real resources or financial
items provided, without a quid pro quo, by one economy to another.

This item is divided into two subitems, according to the related sector;
-

General Government (such as grants)

Other Sectors (workers remittances and other transfers)

2. Capital And Financial Account

This item is divided into two main categories: The capital account and the
financial account:
a) Capital Account
Capital account consists of two items
i) Capital transfers (such as debt forgiveness, migrants transfers)
ii) Acquisition or disposal of non-produced and nonfinancial assets
(intangible assets like land and tangible assets like franchise, copyright, trademarks
and leases and other transferable contracts)
b) Financial Account
Transactions in the external assets and liabilities of an economy constitutes
another significant category of the balance of payments statistics. Short and longterm international financial flows of the private and public sector are followed under
this account.
The financial flows, which are an integral part of the international economic
transactions, basically cover all transactions associated with the change of ownership
in external financial assets and liabilities of an economy.
According to the type of the financial flows, the Financial Account is
classified as follows;
i) Direct Investment
ii) Portfolio Investment

iii) Financial Derivatives

iv) Other Investment
v) Reserve Assets.
The above items, except for the Reserve Assets, are classified as follows
on an asset/ liability basis;
Direct Investment, according to direction of the investment;
Portfolio Investment, according to sector and instrument;
Financial Derivatives, according to sector;
Other Investment, according to instrument, sector and maturity;
Sectors are classified as;
-

Monetary authority (Central Bank)

General Government (Government and subordinate bodies, local

administrations etc.)

Banks (Public and private banks)

Other sectors (Public and private enterprises and real persons)

and Maturity is described as;

-

short-term referring to a maturity of less than or equal to 1 year

long-term referring to a maturity of more than 1 year

i) Direct investment
Direct investment is the category of international investment that reflects the
objective of a resident entity in one economy obtaining a lasting interest in an
enterprise resident in another economy. Direct investment definition requires that
direct investor should have an ownership of 10 percent or more of the ordinary
shares or the voting power in the management of an enterprise.
7

Being recorded on a directional basis (residents direct investment abroad

and nonresidents direct investment in the reporting economy), the major components
of the direct investment item are Equity Capital, Reinvested Earnings, and Other
Capital:
-

Equity Capital refers to the investment of a direct investor for the

establishment of a new enterprise outside the economy in which the
investor is located or the acquisition of the share of ownership in an
existing enterprise,

Reinvested Earnings refers to direct investors share of earnings

not distributed as dividends and added to the equity capital,

Other Capital refers to investment associated with the borrowing

and lending of funds between direct investors and their subsidiaries,
branches and associates.

ii) Portfolio Investment

The portfolio investment, which is briefly defined as investment on securities,
generally includes equity securities and debt securities in the form of bills and bonds
issued by public and private institutions as well as money market instruments.
There are significant differences between direct investment and portfolio
investment, the most important being the issue of management and control. In the
case of direct investment, investors expect to have an effective voice in the
management and control of the enterprise. However, portfolio investors provide funds
for the resident enterprise from international capital markets without having an
effective voice in management. Also in addition to the investment capital, direct
investors may provide production technology and management skills to the direct
investment enterprise. On the other hand, the portfolio investor provides only capital
to the enterprise.
The portfolio investment subitems, classified under assets and liabilities, are
equity securities and debt securities.

iii) Financial Derivatives

Financial derivatives are financial instruments that are linked to an underlying
asset that may be purchased or sold in their own right. Derivatives are conducted by
binding contracts in which the terms of future transactions are determined at present.
There are two main types of financial derivative contracts: forward-type and optionstype.
iv) Other Investment
All the other financial transactions, not covered by direct investment, portfolio
investment, financial derivatives and reserves are included in this category.
Similar to the portfolio investment, it is classified on an asset/liability basis
according to the type and institutional sector as follows:
-

Trade credits (credits extended for exports or imports)

Loans

Currency and deposits

Other assets and liabilities.

v) Reserve Assets
Reserve Assets include;
-

Monetary Gold

Special Drawing Rights (SDRs)

Reserve Position in the Fund

Foreign Exchange Holdings

Other claims

Monetary Gold: Monetary gold refers to the gold owned by the monetary
authority of the country.
Special Drawing Rights (SDR): SDRs are international reserve assets
created by the IMF to supplement other reserve assets that have been allocated to
IMF members in proportion to their respective quotas.
Reserve Position in the Fund: The members reserve positions in the IMF
are the sum of members reserve tranche purchases that are readily repayable to
them. The purchases from the Fund are recorded as an increase in foreign exchange
holdings and a decrease in the reserve position.
Foreign Exchange Holdings: Foreign exchange holdings cover monetary
authorities claims on nonresidents in the forms of currency, bank deposits,
securities, other bond and notes, money market instruments and claims arising from
arrangements between central banks or governments.
Other Claims: Other claims is a residual category including the items that
are not classified above. For instance, reserve assets of banks that are subject to the
control of the monetary authority are classified under this category.
3. Net Errors And Omissions
The balance of payments is constructed as an accounting system, in which
each transaction is recorded twice with two opposite signs (credit and debit entries).
That is, the Current Account and the Capital and Financial Account should always
be equal in absolute values since each transaction is recorded as credit and debit
entries with equal values. In practice, however, this theoretical consequence occurs
rarely. The collection of data from different sources leads to differences in valuation,
measurement and time of recording; as a result, these differences are reflected in
Net Errors and Omissions item as residual.
Here are two examples:
The physical movement of goods is recorded on the basis of customs
documents, while records regarding the payments are provided from banks reports.
The value of these records may differ causing unequal entries to the related items.
10

Assuming that the exported goods are invoiced as 100 units in custom documents,
and 70 units of this total amount are deposited to the exporters account in a resident
bank, while the remaining 30 units are kept in a deposit account abroad; the
remaining 30 units is recorded under Net Errors and Omissions item since it will not
be reflected in resident banks records. However, the change in resident nonbank
sectors deposit accounts abroad is obtained from the Bank for International
Settlements

(BIS)

statistics

and

reflected

under

the

Other

Investment/Assets/Currency and Deposits/Other Sectors item beginning with 2008

data.
If the 100 units of tourism revenues or expenditures derived from survey
results do not match with a corresponding 100 units increase or decrease in foreign
currency holdings of the banks, the difference is reflected in Net Errors and
Omissions item.

11

IV-THE PRACTICE IN TURKEY AND DATA SOURCES

The balance of payments statistics of Turkey are based on the international
standards and principles recommended by the IMF to all member countries. Turkeys
balance of payments statistics were compiled by the Ministry of Finance until 1975
and have been compiled by the Central Bank of Turkey (CBRT) since then. The
statistics, which are available only for the main items from 1975 to 1983, are
published annually for the period between 1984 and 1991 and monthly since 1992 by
the Balance of Payments Division of the Statistics Department of the CBRT in
accordance with the Detailed Presentation as given in the appendix section of this
text. The major sources of the balance of payments statistics are;
-

Foreign exchange transaction reports of the CBRT and resident

banks,

Trial balances of resident banks,

Foreign trade statistics compiled by the Turkstat,

Credit and debit figures on freight and insurance regarding

merchandise trade provided by Turkstat,

The surveys conducted by the Ministry of Culture and Tourism,

Turkstat, and the CBRT,

Data provided through direct reporting of the related resident

enterprises,

Stocks data on nonresidents portfolio investments provided from

custodian banks,

Stocks data provided by the Central Registry Agency on domestic

bond issues of banks and other sectors and on equity transactions
at the Istanbul Stock Exchange (ISE)

Annual direct investment survey,

Financial press

12

The foreign exchange transactions of both the CBRT and the resident banks
are reported monthly in electronic forms on the basis of approximately 600
transaction codes specified in terms of transaction types. These sources are mainly
used in the compilation of the Financial Account.
For the most part of the current account, the main data source is Turkstat.
The exports and imports data compiled by Turkstat are the basis of the foreign trade
figures and are also used in the calculation of trade credits. Freight and insurance
statistics regarding merchandise trade are also provided by Turkstat based on
monthly studies. The shuttle trade and travel revenue and expenditure figures are
based on the related surveys conducted by Turkstat.
The detailed presentation items of Turkeys balance of payments statistics
and the related compilation methods are explained below. In the detailed
presentation, there are some items (like shuttle trade) that are not specified in the
BPM5s standard components. The importance of specific items leads to
differentiation in the standard components of countries. For example, oil exporting
countries disseminate the relevant data in their statistics.
1. Current Account
a) Foreign Trade Balance
This item covers the movement of exported and imported goods between
residents and nonresidents that are cleared through the customs. As regards the
foreign trade figures, the data disseminated by Turkstat on a special trade basis are
converted to general trade basis through an adjustment item using the data on free
trade zones provided separately by Turkstat. In terms of timing, the recording of the
goods during the clearance through customs is consistent with the change of
ownership principle of the balance of payments statistics.
Data on exports that are valued at f.o.b. basis (cost of goods excluding
insurance and freight) and data on imports that are valued at c.i.f basis (cost of goods
including insurance and freight) are published with the inclusion of non-monetary
gold data by Turkstat. The exports and imports of non-monetary gold are deducted
from general exports and imports figures and recorded under the Adjustment:
13

Coverage item, exports of fuels and provisions procured at ports by carriers are
deducted from general exports figures and are also recorded under the Adjustment:
Coverage item; whereas the freight and insurance are deducted from import c.i.f.
figure and recorded under the Adjustment: Classification item. So that, data on gold
exports and imports are transferred to Non-Monetary Gold item, data on goods
procured at ports by carriers are transferred to Goods Procured in Ports by Carriers
item and imports figure would imply only the cost of goods, by transforming into f.o.b.
basis. Besides, data on imports in the form of financial leasing are recorded in the
Financial Account under Other Investment / Liabilities / Loans / Other Sectors /
Long-Term / Drawings.
The goods purchased by the foreign visitors from the former Soviet Union
and East European countries to be resold in foreign countries are not covered in the
foreign trade statistics. This kind of exports, named Shuttle Trade, has become an
important source of external trade and the value of these exports is calculated by
Turkstat by means of a quarterly Shuttle Trade Survey conducted at the customs.
b) Services
i) Transportation
Transportation item is composed of Freight and Other Transportation.
While the former refers to transportation regarding merchandise trade, the latter
refers to international passenger and baggage transportation.
Freight service can be provided to or acquired from abroad either by resident
or nonresident carriers, however in the balance of payments statistics, freight
services provided to nonresidents by resident transport operators regarding exports
are recorded as credit, whereas freight services acquired from nonresident operators
by residents regarding imports are recorded as debit. Credit and debit figures for
freight services are calculated within the framework of the results of a monthly study
performed by Turkstat based on the invoices attached to customs declaration forms.

14

Other transportation data are based on data obtained from transportation

operators.
ii) Travel
Travel revenues are based on Departing Visitors Survey conducted by
Turkstat in cooperation with the Ministry of Culture and Tourism and the CBRT. In the
survey, it is targeted to determine the domestic expenditures of foreign visitors
departing from Turkey and travel related expenditures of citizen visitors, who are
residing abroad and considered as nonresidents in compliance with the balance of
payments methodology.
Surveys are conducted at the border gates, on a nationality basis, four times
a year, so as to cover quarterly periods. The survey results estimate the average
expenditures of foreign visitors on a nationality basis with the breakdown of
overnight-stays and the excursions. On package tours, only the expenditures in
Turkey are taken into consideration. These figures on average expenditures are
expanded with the number of foreign visitors provided by the Directorate General for
Security for the related periods.
Likewise, the average expenditures of citizen visitors residing abroad are
expanded by the number of citizen visitors based on another survey.
The travel expenditures are compiled from Arriving Citizens Survey
conducted by Turkstat. In order to estimate per capita expenditure figures for Turkish
travelers abroad, these sample surveys are also conducted on a quarterly basis for
resident visitors arriving in Turkey.
iii) Construction Services
Receipts related to the construction services performed abroad by the
resident companies are compiled from the banks reports.

15

iv) Insurance Services

The data on insurance and reinsurance transactions other than freight
insurance with nonresidents are collected from the resident insurance companies.
Freight insurance, as in the calculation of freight, is calculated within the framework
of the results of a monthly study performed by Turkstat based on the invoices
attached to customs declaration forms.
v) Financial Services
Financial services conducted between residents and nonresidents cover the
financial intermediary and auxiliary services (except those of insurance enterprises
and pension funds). It includes the commissions and the other fees paid and
received related to financial services between the resident banks and nonresidents.
The data are compiled from the banks reports.
vi) Other Business Services
This item covers the commissions and other fees acquired from or paid to
nonresidents due to merchanting activities. The data are based on the banks
records. Additionally, credit data on Legal Services have been obtained from the
domestic firms providing legal services to nonresidents.
vii) Government Services
Revenues and expenditures of embassies, consulates, and government units
in foreign countries are included. The data are compiled from the records of the
CBRT and the banks except the data on Embassies and Consulates, which are
obtained from administrative records.
viii) Other Services
This item covers the credits and debits of other services that are not covered
in previous items. Included items are postal and courier services, telecommunication
and news agency services, royalties and license fees, and the related services for
proprietary rights. The figures on telecommunication and news agency services and

16

postal and courier services are submitted by the related companies, while the others
are based on the records of the CBRT and the banks.
c) Income
i) Compensation of Employees
Data on wages earned by nonresidents working in Turkey are recorded
under this item. The calculations are based on the number of foreigners who have
been granted work permits by the Ministry of Labor and Social Security.
ii) Income
Direct Investment: The profits accruing to a direct investor from the
ownership of a direct investment abroad are recorded as Credit, whereas the profits
acquired from the direct investment in the reporting economy are recorded as Debit,
which also includes reinvested earnings in addition to distributed profits. The figure
on distributed profits is compiled from banks reports, while the figure on reinvested
earnings is calculated from Direct Investment Survey, which is conducted annually.
Portfolio Investment: Portfolio investment income consists of income from
equity securities and debt securities like bonds and notes, excluding the transactions
realized in the form of direct investment. Included in this item are the securities
related interest receipts of the CBRT, banks and other sectors and interest payments
of the Undersecretariat of Treasury, banks and other sectors associated with their
bond issues in the international capital markets. These figures are obtained from the
records of the CBRT and the banks reports.
Other Investment: The other investment income comprises interest
revenues or expenditures related to deposits, loans and trade credits. The data are
based on the detailed records of the CBRT and the banks.

17

d) Current Tranfers
i) General Government
This item includes the grants between the countries, the revenues from the
transactions of the foreign and Turkish embassies and consulates, and the payments
of Turkish citizens residing abroad in return for the military service. These data are
based on the reports of the CBRT and the banks.
ii) Other Sectors
Workers Remittances: This item covers the foreign exchange remittances
of Turkish citizens residing abroad. Workers remittances are sent through the
domestic banks and converted to domestic currency. However, the remittances into
their foreign exchange accounts in the domestic banks are recorded in the Other
Investment/Liabilities/Currency and Deposits item under the Financial Account.
The data are obtained from the banks reports.
Other Transfers: Data regarding net value of the earned premiums and
received claims vis--vis the paid premiums and incurred claims owing to exchange
of insurance services are recorded in this item.
2. Capital and Financial Account
a) Capital Account
i) Migrants Transfers
The transfers of foreign assets into Turkey by migrants are recorded under
this item for which the data are obtained from the official records.
ii) Acquisition or Disposal of Non-produced and Nonfinancial Assets
Acquisition or disposal of non-produced and nonfinancial Assets records
intangible assets like land and tangible assets like franchise, copyright, trademarks
and leases and other transferable contracts. The data source is the Turkish sports

18

clubs which report revenues gained and expenses incurred from nonresident sports
clubs for the transfer of a player.
b) Financial Account
i) Direct Investment
Direct investment is the category of international investment that reflects the
objective of a resident entity in one economy obtaining a lasting interest in a direct
investment enterprise located in another economy, by controlling the management of
the enterprise. Direct investment occurs when the investor owns 10 percent or more
of the ordinary shares in the enterprise.
Direct Investment Abroad
Residents direct investment transactions abroad by means of establishing a
new enterprise or sharing the ownership in existing ones, opening a new branch and
the repatriation of the capital are recorded under this item in addition to the real
estate purchases abroad. Data are obtained from the banks foreign exchange
records on a transaction basis comprising the country, institutional sector and
company information.
Direct Investment in Turkey
Equity Capital: Equity Capital item comprises nonresidents direct
investment transactions in Turkey by means of establishing a new enteprise, sharing
the ownership in existing ones and opening a new branch, as well as reinvested
earnings. These data are compiled from the banks foreign exchange reports, annual
Direct

Investment

Survey

and

noncash

transactions

provided

by

the

Undersecretariat of Treasury. The Daily Bulletins of Istanbul Stock Exchange and

the financial press are also used.
Other Capital: The loans extended by parent companies to their direct
investment enterprises and the related repayments are included in other capital. The
data source is banks reports providing details on credit disbursements of the private
sector on a credit by credit basis.

19

Real Estate: This item covers the value of the real estate acquisitions
and sales of nonresidents in Turkey. The data sources are the records of the General
Directorate of Land Registry and Cadastre for the figures on traded real estates with
a country breakdown and the unit prices are estimated from Departing Visitors
Survey conducted by Turkstat.
ii) Portfolio Investment
Portfolio investment is composed of investment on equity and debt securities
not covered by direct investment and reserve assets.
Assets: This item covers residents security transactions in international
markets. Also included are repurchase agreements and other transactions related to
residents bond issues (for example Treasurys) in international markets. The data
source is the banks reports comprising the sectoral breakdown.
Liabilities:

Nonresidents security transactions in

domestic markets

associated with equity securities and residents bond issues in domestic and
international capital markets (for example Treasurys, banks and other sectors bond
issues in international markets and the net amount purchased by nonresidents of the
debt securities issued by the Treasury, banks and other sectors in the domestic
market) are recorded under this item. Data source for bond issues in international
capital markets is the CBRTs and the banks reports. Data on domestic bond issues
of banks and other sectors and equity transactions at the ISE are derived from stocks
provided by the Central Registry Agency on a security by security basis by adjusting
for foreign exchange and market price changes. On the other hand, data on
government domestic debt securities are derived from stocks provided by custodian
banks on a security by security basis and adjusted for foreign exchange and market
price changes.
iii) Other Investment
Other investment contains all financial transactions not covered in direct
investment, portfolio investment and reserve assets.

20

Assets: This item consists of trade credits and loans extended by residents
to nonresidents and the banks foreign exchange and Turkish Lira holdings within
nonresident banks.
Trade Credits consist of credits extended by a resident exporter to a
nonresident importer and the related payments for these exports at the maturity. Data
on disbursements are based on the figures compiled by Turkstat including the details
on the type of payments, while the associated repayment figures are estimated by
the moving average method, where the maturities are based on the results of a
survey the results of a survey conducted with the exporting companies.
Loans comprise credits extended by the CBRT, General Government
and banks to nonresidents, as well as the placements of resident banks within foreign
non-correspondent banks. Data sources are the reports of the CBRT and the banks.
Currency and Deposits reflect the change in the foreign exchange and
Turkish Lira holdings of the commercial banks deposited within their foreign
correspondent banks. The change in foreign exchange holdings reflects all resident
to nonresident and resident to resident foreign currency transactions. Furthermore,
the change in nonbank residents deposit holdings abroad are also recorded under
this item. Data sources for foreign exchange and Turkish Lira holdings of banks are
banks reports and trial balances of banks, respectively; while the data source for the
change in the resident nonbank sectors deposit holdings abroad is the BIS statistics,
reflected under the Other Investment/Assets/Currency and Deposits/Other Sectors
item.
Other Assets cover foreign currency banknotes earned by residents
from shuttle trade and not held within bank accounts, therefore, also not covered in
banks records. This figure, which is assumed to be zero after 2004, was based on
studies conducted for shuttle trade in the previous years. Also, the General
Government item under the Other Assets records participation share payments made
by the government to the international organizations.

21

Liabilities: This item consists of trade credits and loans obtained by

residents from nonresidents and deposits of nonresidents held with the CBRT and
the banks.
Trade Credits consist of credits extended by a nonresident exporter to
a resident importer and the related payments for these imports at the maturity. Data
on disbursements are based on Turkstat figures for imports in the type of cash
against goods and banks reports for the remaining types of payments, while the
associated repayment figures are estimations by the moving average method, where
the maturities are based on the results of a survey conducted with the importing
companies and banks reports, respectively.
Loans comprise the lending of funds by nonresidents to residents
(including the disbursements from International Monetary Fund) on a sector and
maturity basis. Data are compiled from the CBRTs and banks reports. Furthermore,
data on external short-term loans and long-term trade credits and loans of the private
sector are compiled in detail through banks transaction basis reports, which also
produce stock data for external debt statistics.
Currency and Deposits comprise deposit accounts of nonresidents
held within the CBRT and the banks. Deposit accounts held with the CBRT records
the change in the FX Deposit Accounts with Credit Letters and Super FX Accounts of
the Turkish citizens residing abroad, while the deposits held within banks records the
changes in the FX and Turkish Lira deposit accounts of nonresident persons and
banks. Data are compiled from CBRTs reports and banks trial balances.
iv) Reserve Assets
Reserve Position in the Fund: This item reflects the change in the reserve
position in the IMF. The latest quota change has been conducted in 1999. Data are
compiled from the records of the CBRT.
Official Reserves: This item consists of the change in the foreign exchange
holdings of the CBRT held in the correspondent banks and purchases and sales of
tradable securities for the purpose of portfolio management. The change in reserves
reflects all resident to nonresident and resident to resident foreign currency

22

transactions. Data source is the CBRTs reports. IMF has made an SDR allocation to
its members in proportion to their existing quotas in the Fund in August and
September 2009 and accordingly, allocation to Turkey (the SDR equivalent of USD)
was recorded under the following Financial Account items in the balance of
payments statistics in compliance with the sixth edition of the Balance of Payments
Manual: Other Investment / Other Liabilities and Reserve Assets / Foreign
Exchange / Currency and Deposits.
V- DATA ACCESS
Balance of payments statistics can be reached from the CBRTs web site,
http:// www.tcmb.gov.tr/yeni/eng/ either by following the link Data / Periodic Data /
Balance of Payments Statistics or through Electronic Data Dissemination System by
following the link Data / Statistical Data which is the medium of dissemination of
data in a time series format.
The related statistics are disseminated monthly in compliance with the
advance release calendar specified in accordance with the Official Statistics Program
prepared by the Turkstat based on the Turkish Statistical Law and the IMFs Special
Data Dissemination Standards. Advance Release Calendars which can be reached
by the following link Data / Periodic Data / Balance of Payments Statistics, are also
available

at

the

Turkish

Statistical

http://www.turkstat.gov.tr.

23

Institutes

(Turkstat)

web

site,

Appendix: Balance of Payments of Turkey: Detailed Presentation:

I-CURRENT ACCOUNT
I-a-Goods, Services and Income (A+B+C)
I-b-Goods and Services (A+B)
I-A.GOODS
I-A.a-Exports
I-A.b-Imports
I-A.1.General Merchandise
I-A.1.1.Exports f.o.b.
I-A.1.1.1.Exports f.o.b.
I-A.1.1.2.Shuttle trade
I-A.1.1.3.Adjustment
I-A.1.2.Imports f.o.b.
I-A.1.2.1.Imports c.i.f.
I-A.1.2.2.Adjustment: Freight and Insurance
I-A.1.2.3.Adjustment: Other
I-A.2.Non-Monetary Gold (net)
I-A.2.a-Exports
I-A.2.b-Imports
I-A.3.Goods procured in ports by carriers
I-A.3.a-Exports
I-A.3.b-Imports
I-B.SERVICES
I-B.a-Credit
I-B.b-Debit
I-B.1.Transportation
I-B.1.a-Credit
I-B.1.b-Debit
I-B.1.1.Freight
I-B.1.1.a-Credit
I-B.1.1.b-Debit
I-B.1.2.Other Transportation
I-B.1.2.a-Credit
I-B.1.2.b-Debit
I-B.2.Travel
I-B.2.a-Credit
I-B.2.b-Debit
I-B.3.Construction Services
I-B.3.a-Credit
I-B.3.b-Debit
I-B.4.Insurance Services
I-B.4.a-Credit
I-B.4.b-Debit
I-B.5.Financial Services
I-B.5.a-Credit
I-B.5.b-Debit
I-B.6.Other Business Services
24

I-B.6.a-Credit
I-B.6.b-Debit
I-B.7.Government Services
I-B.7.a-Credit
I-B.7.b-Debit
I-B.8.Other Services
I-B.8.a-Credit
I-B.8.b-Debit
I-C.INCOME
I-C.a-Credit
I-C.b-Debit
I-C.1.Compensation of Employees
I-C.1.a-Credit
I-C.1.b-Debit
I-C.2.Investment Income
I-C.2.a-Credit
I-C.2.b-Debit
I-C.2.1.Direct Investment
I-C.2.1.a-Credit
I-C.2.1.b-Debit
I-C.2.2.Portfolio Investment
I-C.2.2.a-Credit
I-C.2.2.b-Debit
I-C.2.3.Other Investment
I-C.2.3.1.Interest Income
I-C.2.3.2.Interest Expenditure
I-C.2.3.2.1.Long Term
I-C.2.3.2.1.1.Monetary Authority
I-C.2.3.2.1.2.General Government
I-C.2.3.2.1.3.Banks
I-C.2.3.2.1.4.Other Sector
I-C.2.3.2.2.Short Term
I-D.CURRENT TRANSFERS
I-D.1.Official Transfers
I-D.2.Other Sectors
I-D.2.1.Workers Remittances
I-D.2.2.Other Transfers

II-CAPITAL AND FINANCIAL ACCOUNT

II-A.CAPITAL ACCOUNT
II-A.1.Migrants transfers
II-A.2.Acquisition/Disposal of Nonproduced,
Nonfinancial Assets
II-B.FINANCIAL ACCOUNT
II-B.1.Direct Investment

25

II-B.1.1.Abroad
II-B.1.1.a-Inflow
II-B.1.1.b-Outflow
II-B.1.2.In Turkey
II-B.1.2.1.Equity Capital
II-B.1.2.1.a-Inflow
II-B.1.2.1.b-Outflow
II-B.1.2.2.Other Capital (Net)
II-B.1.2.3.Real Estate (Net)
II-B.2.Portfolio Investment
II-B.2.1.Assets
II-B.2.1.1.General Government
II-B.2.1.2.Banks
II-B.2.1.3.Other Sectors
II-B.2.2.Liabilities
II-B.2.2.1.Equity Securities
II-B.2.2.2.Debt Securities
II-B.2.2.2.1.Monetary Authority
II-B.2.2.2.2.General Government
II-B.2.2.2.2.1.In Turkey
II-B.2.2.2.2.2.Abroad
II-B.2.2.2.2.2.1.Borrowing
II-B.2.2.2.2.2.2.Repayment
II-B.2.2.2.3.Banks
II-B.2.2.2.3.1.In Turkey
II-B.2.2.2.3.2.Abroad
II-B.2.2.2.4.Other Sectors
II-B.2.2.2.4.1.In Turkey
II-B.2.2.2.4.2.Abroad
II-B.3.Other Investment
II-B.3.1.Assets
II-B.3.1.1.Trade Credits
II-B.3.1.1.1.Credits Extended
II-B.3.1.1.2.Repayments
II-B.3.1.2.Loans
II-B.3.1.2.1.Monetary Authority
II-B.3.1.2.2.General Government
II-B.3.1.2.3.Banks
II-B.3.1.3.Currency and Deposits
II-B.3.1.3.1.Banks
II-B.3.1.3.1.1.Foreign Exchange
II-B.3.1.3.1.2.Turkish Lira
II-B.3.1.3.2.Other Sectors
II-B.3.1.4.OtherAssets
II-B.3.1.4.1.Monetary Authority
II-B.3.1.4.2.General Government
II-B.3.1.4.2.Other Sectors
II-B.3.2.Liabilities
II-B.3.2.1.Trade Credits
II-B.3.2.1.1.Long Term

26

II-B.3.2.1.1.1.Drawings
II-B.3.2.1.1.2.Repayments
II-B.3.2.1.2.Short Term
II-B.3.2.1.2.1.Drawings
II-B.3.2.1.2.2.Repayments
II-B.3.2.2.Loans
II-B.3.2.2.1.Monetary Authority
II-B.3.2.2.1.1.Use of Fund Credits and Loans
II-B.3.2.2.1.1.1.Drawings
II-B.3.2.2.1.1.2.Repayments
II-B.3.2.2.1.2.Long Term
II-B.3.2.2.1.2.1.Drawings
II-B.3.2.2.1.2.2.Repayments
II-B.3.2.2.1.3.Short Term
II-B.3.2.2.2.General Government
II-B.3.2.2.2.1.Use of Fund Credits and Loans
II-B.3.2.2.2.1.1.Drawings
II-B.3.2.2.2.1.2.Repayments
II-B.3.2.2.2.2.Long Term
II-B.3.2.2.2.2.1.Drawings
II-B.3.2.2.2.2.2.Repayments
II-B.3.2.2.2.3.Short Term
II-B.3.2.2.3.Banks
II-B.3.2.2.3.1.Long Term
II-B.3.2.2.3.1.1.Drawings
II-B.3.2.2.3.1.2.Repayments
II-B.3.2.2.3.2.Short Term
II-B.3.2.2.4.Other Sectors
II-B.3.2.2.4.1.Long Term
II-B.3.2.2.4.1.1.Drawings
II-B.3.2.2.4.1.2.Repayments
II-B.3.2.2.4.2.Short Term
II-B.3.2.3.Currency and Deposits
II-B.3.2.3.1.Monetary Authority
II-B.3.2.3.1.1.Long Term
II-B.3.2.3.1.2.Short Term
II-B.3.2.3.2.Banks
II-B.3.2.3.2.1.Banks
II-B.3.2.3.2.1.1.Foreign Exchange
II-B.3.2.3.2.1.2.Turkish Lira
II-B.3.2.3.2.2.Other Sectors
II-B.3.2.4.Other Liabilities
II-B.4.Reserve Assets
II-B.4.1.Reserve Position in the Fund
II-B.4.2.Foreign Exchange
II-B.4.2.1.Currency and Deposits
II-B.4.2.2.Securities
II-B.4.2.3.Other Reserve Assets
III-NET ERRORS AND OMISSIONS

27